Comments on: SF FED: RATES MAY STAY AT ZERO FOR YEARS http://pragcap.com/sf-fed-rates-may-stay-at-zero-for-years Wed, 17 Mar 2010 00:45:58 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: AlanG http://pragcap.com/sf-fed-rates-may-stay-at-zero-for-years#comment-1538 AlanG Wed, 27 May 2009 10:58:00 +0000 http://pragcap.com/sf-fed-rates-may-stay-at-zero-for-years#comment-1538 Wouldn't completely flushing the system of credit cause depression like 30+% contraction? What would the unemployment rate be in that scenario? I am not sure what the answer is, but that sounds like by far the most painful alternative. Wouldn't completely flushing the system of credit cause depression like 30+% contraction? What would the unemployment rate be in that scenario? I am not sure what the answer is, but that sounds like by far the most painful alternative.

]]> By: eh http://pragcap.com/sf-fed-rates-may-stay-at-zero-for-years#comment-1537 eh Wed, 27 May 2009 10:08:16 +0000 http://pragcap.com/sf-fed-rates-may-stay-at-zero-for-years#comment-1537 That zero rate will be approx what banks have to pay for capital, or what you earn on your savings, but not what banks earn on the money they loan. <br><br>A small clarification there. That zero rate will be approx what banks have to pay for capital, or what you earn on your savings, but not what banks earn on the money they loan.

A small clarification there.

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